Judge: Scrushy Unfit to Lead New Public Company

By: Associated Press
By: Associated Press

BIRMINGHAM, Ala. (AP) -- A federal judge in Alabama has ruled that a former HealthSouth CEO is unfit to lead a new public company.

AL.com reported Thursday that a U.S. District Court judge denied a request by ex-HealthSouth CEO Richard Scrushy to lift a sanction prohibiting him from assuming an executive position in companies that sell securities to the public.

In 2003, the Securities and Exchange Commission sued HealthSouth and Scrushy for fraud an insider trading. Scrushy was indicted in 2009 on federal bribery and fraud charges for funneling $500,000 in donations to ex-Gov. Don Siegelman's lottery campaign. In exchange, Scrushy was appointed to a position on a state hospital regulatory board.

Scrushy asked a judge to lift the sanction so he could form a new company to capitalize on federal health care legislation.

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